Economists understand that people respond to
A) laws.
B) incentives.
C) threats more than rewards.
D) positives but not negatives.

Question

Quizplus · Accepted Answer

Economists understand that people respond to incentives, which could be positive or negative. Laws and threats may be considered types of negative incentives, while rewards are types of positive incentives. It is not accurate to say that people only respond to positives but not negatives, as both types of incentives can motivate behavior.

Economists Understand That People Respond to